MIT study: AI job displacement slower than predicted
MASSACHUSETTS, UNITED STATES — A recent study from Massachusetts Institute of Technology (MIT) challenges the prevailing belief that artificial intelligence (AI) will rapidly automate jobs.
The research from MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL) analyzed the economic feasibility of automating visual tasks. Surprisingly, it found most at-risk jobs currently lack a clear business case for AI automation.
“This indicates a more gradual integration of AI into various sectors, contrasting with the often hypothesized rapid AI-driven job displacement,” says Neil Thompson, Principal Investigator at MIT CSAIL and the Initiative on the Digital Economy.
The study estimated that only 23% of wages for visual tasks are economically viable to automate with AI right now. Thompson says while AI can replace human labor, many tasks still aren’t cost-effective to automate.
The researchers surveyed U.S.-based non-farm businesses to evaluate AI automation costs versus labor savings. For a bakery, while AI could automate 6% of a baker’s quality inspection time, implementation and maintenance costs often outweigh potential savings.
“The conclusion is striking: a much smaller share of the labor market is at risk of automation than direct estimations based on exposure would suggest,” says Antonin Bergeaud, Associate Professor of Economics at HEC Paris.
Thompson hopes that the findings will be a “pivotal reference” for future explorations and policy-making in technology, economics, and the labor market.
Goldman Sachs predicts AI advancements could jeopardize 300 million jobs globally due to automation while tech billionaire Elon Musk says AI will end the need for jobs, but many believe human labor will still be necessary for many roles.
